(BSS/AFP) - Japanese auto giant Toyota said Wednesday it had hiked its operating income and net profit forecasts for the current fiscal year despite the impact of US tariffs.

"Despite the impact of US tariffs, we have continued to build upon our improvement efforts such as increasing sales volume, improving costs, and expanding value chain profits," the firm said.

"We are steadily translating comprehensive future investments into improved productivity and increased returns, with a strong focus on improving the breakeven volume," Toyota said in a statement.

For the year ending in March 2026, Toyota now expects operating income of 3.4 trillion yen ($22.1 billion), up from its previous forecast of 3.2 trillion yen.

Net profit was seen hitting 2.9 trillion yen, against its previous estimate of 2.7 trillion yen.

The company said it now expected sales this year of 49.0 trillion yen, up from its August forecast of 48.5 trillion yen.

The world`s biggest carmaker by unit sales had cut its guidance in August, blaming the impact of US tariffs and other factors.

It had lowered its operating income projection to 3.2 trillion yen from 3.8 trillion, and for net income 2.7 trillion yen from 3.1 trillion.

Trade officials in July reached a deal that saw the United States lower tariffs on Japanese goods to 15 percent from a threatened 25 percent.

Japanese cars were taxed at a higher rate of 27.5 percent and the reduction to 15 percent did not take effect until mid-September.

Japan`s US-bound car exports slumped 24 percent year-on-year in value September, a major blow for an automotive sector that accounts for around eight percent of jobs in the Asian nation.